The LLC is often described as a hybrid business form. LLC’s combine the liability protection of a corporation with the tax treatment and ease of administration of a partnership. It offers liability protection to its owners for company debts and liabilities.

LLC management can elect to be taxed either as partnerships or as corporations. They can choose to have periodic meetings of their memberships, or ignore such formalities altogether.

If the size of your company grows, it is possible to convert and LLC to a corporation. The cost of setting up an LLC is roughly the same as setting up a corporation.
Advantages of the LLC

LLCs do not require annual meetings and require few ongoing formalities.

Owners are protected from personal liability for company debts and obligations.

LLCs enjoy partnership-style, pass-through taxation, which is favorable to many small business.

Disadvantages of the LLC

LLCs do not have a reliable body of legal precedent to guide owners and managers, although LLC law is becoming more reliable as time passes.

An LLC is not an appropriate vehicle for businesses seeking to become public eventually, or to raise money in the capital markets.

LLCs are more expensive to set up than partnerships.

LLCs usually requires annual fees and periodic filings with the state.

Some states do not allow the organization of LLCs for certain professional vocations.

Corporations

A corporation is a body, that is, it is a legal person in the eyes of the law. It can bring lawsuits, can buy and sell property, contract, be taxed, and even commit crimes.

A corporation protects its owners from personal liability for corporate debts and obligations, within limits. Corporations are the ideal vehicles for raising investment capital. A corporation only needs to sell shares of its stock to raise capital. The sale of corporate stock is heavily regulated by the U.S. Securities and Exchange Commission and by the state securities laws.

A corporation’s shareholders, directors, officers, and managers must observe particular formalities in a corporation’s operation and administration. Decisions regarding a corporation’s management must often be made by formal vote and must be recorded in the corporate minutes. Meetings must be properly noticed and must meet quorum requirements. Corporations must meet annual reporting requirements in their state of incorporation and in states where they do significant business.
Advantages of the US Corporation

Owners are protected from personal liability for company debts and obligations.

Corporations have a reliable body of legal precedent to guide owners and managers.

Corporations are the best vehicle for eventual public companies.

Corporations can more easily raise capital through the sale of securities.

Corporations can easily transfer ownership through the sale of securities.

Corporations can have and unlimited life.

Corporations can create tax benefits under certain circumstances, but note that C corporations may be subject to “double taxation” on profits.

Corporations are more expensive to set up than partnerships and sole proprietorships.

Corporations require annual fees and periodic filings with the state.

Taxes
Single Member LLC
More often than not, when and LLC has only one member, the fact that it is an LLC is ignored for the purpose of filing a federal tax return (Treasury Regulations Section 301.7701-1,-2,-3)
Multi Member LLC
Many LLCs with more than one member file a partnership return. You can also file as a corporation, using a different form.
Corporations
C Corporations are taxed at rates ranging from 15 to 38 percent, based on taxable income. In addition to income taxes, corporations will more than likely have to pay some, if not all, of the following additional federal taxes:

Self-employment Tax

Federal withholding Tax

Social Security and Medicare withholding Tax

Federal Unemployment Tax

Excise Tax

Corporations that expect to owe more than $500 in a given tax year are required to file and pay estimated tax no later than the 15th day of the 4th, 6th, 9th, and 12th months of their tax year. Your taxable income is calculated by subtracting deductions from income. The remainder is taxed according to the IRS rate schedule, and an Alternative Minimum Tax applies.

US AG 24 Inc.
- Full service support for establishing corporations in the USA

US AG 24 Inc. is an internationally operating service provider in the area of business consulting, specifically with regard to establishing corporations in the USA. Backing US AG 24 Inc. is an association of lawyers, notaries public, tax advisers and business consultants who will provide you with comprehensive advice and support before, during and
after you establish your corporation. This association of expert professionals guarantees that you will be able to take full advantage of the many benefits that
a US-Corporation offers.

You can count on our integrity and reliability as we advise you and organize the establishment of your corporation from start to finish. You will receive from us all of the services you need from a single source, and you'll have a personal contact that you can reach at any time.

What makes us different from the others?

We provide you with support even after your corporation has been established. You will receive a full range of important and simply useful additional services that other service providers either can't or don't wish to offer. US AG 24 Inc. isnot an automated factory for establishing corporations without the possibility of responding to customers' wishes or offering expert advice. We combine expert advice with a range of services that is unique in the industry. Each of our clients has individual goals, and we provide the support you need to help you reach those goals.

Questions and Answers — What you've always wanted to know

What is a US Corporation?
A corporation is a joint-stock company with limited liability.
A stock corporation can issue shares (stocks). The corporation belongs to the
owners of the shares. The founder of the US stock corporation determines the amount
of share capital but does not need to have the share capital at his or her
disposal. In Florida in particular (unlike Germany), no documentation of this capital
is required.

Who is entitled to establish a US Corporation? Any natural person or legal entity, independently of place
of residence or nationality, is entitled to establish a corporation in the USA. The corporation must be established through a US registered agent. The founder
of the corporation need not travel to the USA in order to establish the corporation. We provide an address for the establishment of the corporation
and an office address in the USA (not a post office box), both of which are absolutely required for US corporations. We also process all of the corporation's
correspondence and forward its communications between the USA and Europe.

The name of the corporation
If the name you choose has not already been assigned to an existing corporation, almost any name of your choice may be used for a corporation, with a few exceptions. In contrast to Europe, the choice of a name for a corporation in the USA is left entirely to the founder. The name chosen in the USA for a corporation can be also be used in Europe for a subsidiary, branch, local office, subsidiary GmbH or Co. KG. The name should indicate that it is a corporation (i.e. it should end with "Inc." or "Corporation")

Establishing a GmbH, Ltd. or US Corporation
The tax-free status of companies established in England and operating outside of England was abolished some time ago. Today, a so-called
"Europe GmbH" pays taxes in Europe as well —
in fact, just about the highest taxes in Europe.
It is impossible to establish an Ltd. company in England anonymously,
by contrast to the USA. A US corporation pays taxes in the USA,
i.e. the minimum amount of $150 per year. In case the European public authorities
request information about the corporation, it is thus able
to prove that it genuinely exists in the USA. In the case of an Ltd. company, the European factory
inspectorates very quickly detect whether it actually exists in England
or only exists on paper. In other words, an Ltd. company’s commercial activity
can be prohibited relatively quickly in England. A corporation that is founded
in the USA does not to have to face this problem.

In conclusion, the foundation of an Ltd. company
in England does not bring the founder any advantages whatsoever.
By contrast, a US corporation can be registered in Europe
as well and is highly respected all over the world. By contrast to the European requirements for a GmbH company,
in a US corporation a single person can perform all of its corporate
functions — that is, he or she can be the owner, partner and president or managing
director all in one.

Obviously, a company aims to pay the lowest possible amount
of taxes. In this respect, yet another key advantage is offered
by US law compared to the GmbH law and German corporate tax
regulations, in addition to the possibility of establishing
a company anonymously. If a US corporation provides services,
issues invoices and deposits its revenues in US bank accounts,
it is taxed at a rate between 15% and a maximum of 34%. This
represents a significantly lower tax burden.

US Ccorporation =
flexible operations
Every properly registered US corporation can conduct business
operations and establish subsidiaries all over the world. In order to
operate outside the USA, the corporation requires a document known as an APOSTILLE,
which is issued by the Secretary of State in Florida. This certificate
is based on the Convention de la Haye (Den Haag) of October 5, 1961. According
to the German Minister of Justice, "Public certificates issued abroad
that are to be used in the FRG and to which an ’apostille’
has been attached for this purpose do not require any additional authorization. The apostille is a formal
document in which the genuineness of the certificate is affirmed
by the authorized public agency in the country in which the certificate has been issued, in accordance
with Article 3 of the Convention de la Haye (Den Haag) of October 5, 1961
on the exemption of public certificates issued abroad from FRG legalization
procedures (Bundesgesetzblatt 1965 II, page 875)."

The US-Corporation is listed in the US register of companies,
and after it has been formally registered as such in Germany it is treated
like a German company. Similar procedures apply in other European countries.
Corporations established in the USA can conduct many kinds of business
operations. These are entered into the corporation's foundation document
under the "purpose clause". The various activities of a US
corporation do not have to be reported in any way to the public authorities. A "general
purpose clause" permits the corporation to conduct all of the business operations
that may be pursued in the USA without any specific formal permission.

Liability
The owners and directors of a US-Corporation can never be
held liable forthe activities and obligations of the corporation. US law
permits the president and the directors of a corporation to be exempted
from liability in the corporation's foundation statutes. "Piercing the
corporate veil" with regard to the managing director is also not possible as long
a corporation has properly paid its US taxes and has not violated any currently
applicable US laws.

Liability to pay
tax
We can not, and are not permitted to, provide any tax consulting.
A corporation that is registered in the USA and has its headquarters there
is entitled to operate from the USA, send invoices from the USA to its customers
and thus pay US taxes on its profits. US federal corporate income tax
for active corporations is 15% on net profits up to $50,000. The tax
rate rises progressively to a maximum tax rate of 34%; for net profits
of €10 million or more the maximum tax rate is 36%. In the state of Florida
there is no sales tax, value added tax or trade tax. Only if you would like to sell
products to end consumers in Florida do you have to charge your customers
sales tax and pass it on to the state.

Anonymity
In the state of Florida, the owner (or shareholder) of a US
corporation is permitted to remain anonymous. This means that nobody knows
who the actual owner of the corporation founded in Florida actually
is, not even the US authority in charge of the establishment of corporations.
Only the registered agent knows the identity of the corporation's owner.
The president and the secretary of the corporation are officially listed.

Place of establishment
& share provisions
We recommend the state of Florida as the best place to establish
a US corporation. The fees for establishing a corporation
are very inexpensive there, and both anonymity and one-person corporations are legally
permitted. On account of the tax advantages and other legal
advantages (for foreigners), we strongly recommend Florida for establishing US corporations.
In addition to the fees for establishing a corporation (see the updated
list of fees), you will also have to pay monthly administrative costs for the
office service.

The corporation's shares are stamped with the value of the
capital share in US dollars and the official name of the corporation.

What are the advantages
of a US-Corporation?
Documentation of start-up capital is not required Capitalization
and stock market flotation are possible Tax advantages
Anonymity
for the owner Exemption
from liability Asset protectionNo
inheritance tax